Minto Metals Corp (TSX-V:MNTO) said it has delivered a positive performance for the second consecutive quarter as the copper producer posted its first-quarter metrics.
Sales of copper from its Yukon mine rose by around 71% in the three months to end-March 2022 to 9.1 million pounds compared to 5.3 million pounds in Q1 2021.
Net income came in at C$14.5 million compared to a loss of C$2.7 million a year earlier boosted by revenue, which was up 109%, at C$53.3 million compared to C$25.5 million in the first quarter of last year.
"Our excellent operating performance and cost containment in a higher copper price environment has surpassed our expectations," said Chris Stewart, Minto metals CEO in a statement. "Our team has strong momentum and has delivered a positive performance for the second consecutive quarter."
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Stewart added: "Our quarter 1, Adjusted EBITDA improved to $19.2 million dollars compared to a loss of $0.9 million dollars a year ago. These great results highlight the extraordinary performance and are a testament to the drive and passion to win shown by everyone who works here at Minto."
Notably, all-in-sustaining-costs (AISC) per pound sold averaged US$3.44 in the first quarter, which was a 15.9% decrease from the US$4.09 seen in Q1, 2021.
Minto also confirmed again its guidance for full-year 2022 as the miner continues to ramp up production and said it was committed to a "cost control strategy while improving our mine and milling operations".
The company expects to generate between 27 million and 31 million pounds of payable copper in 2022 at AISC of between US$3.85 to US$4 per pound.
"At the beginning of 2022, Minto committed to spending $8 million dollars to improve the mine water management system at the Minto mine," noted Stewart.
"Our investment included an upgrade to our water treatment plant, the installation of a new microfiltration plant, and the purchase of evaporation units, all to support improved environmental stewardship," he added.
The miner ended the first quarter with C$11.8 million in cash (March 31, 2021: C$778,000).
Minto owns and operates the producing Minto mine located in the Minto copper belt of Yukon in Canada, which includes underground mining operations, a processing plant that produces a high-grade copper, gold, and silver concentrate, and supporting infrastructure.
Contact the author at giles@proactiveinvestors.com